Velocity Composites, a supplier of material kits to the aerospace sector, said inflationary pressures weighed on gross margins, which slipped to 23% from 26% for the full year to 31 October.
Albeit the AIM-quoted company said this was a temporary measure, it wasn’t enough to stop shares slipping 5% to 60.6p.
Revenue for the year increased 22% to £12mln, while the group reported a full-year adjusted EBITDA loss of £500,000, in line with the year earlier.
Looking ahead, the group remained bullish on its outlook thanks to investments which it expects to grow the business “very significantly” over the next two years.
“This growth is largely expected to come in the North American region, and we have designed our new facility in Alabama so it can expand to manage this expected expansion,” said chairman Andy Beaden.